Financial analyst for a small firm

Assignment Help Financial Management
Reference no: EM131305659

FIN 340 Excel Assignment

You may work in groups of up to 3 students for this assignment.

You have just been hired as a financial analyst for a small firm whose employees do not have much experience with Excel. As your first task, you have been asked to develop a simple Excel spreadsheet that your manager can input values for a project the firm is considering to determine whether the project is acceptable. The capital budgeting techniques that the firm uses: Net Present Value; Internal Rate of Return; Profitability Index.

The spreadsheet should contain cells where the manager can input cash flows associated with the project, and the project hurdle rate (or cost of capital). Assume that the longest project that will be considered is a ten-year project. The spreadsheet should contain cells that calculate the NPV, IRR and PI once the inputs have been entered.

Because this is for a manager that has not used Excel before, the spreadsheet should include instructions on how to enter in the inputs (for example, should the initial investment be entered in as a negative or positive value). It should also be formatted so that the manager is able to immediately see whether the project is acceptable or not, without the manager needing to know what the criteria are for accept/reject for a particular technique. In other words, based on the value (NPV, IRR, etc.) generated by the project, there should be a cell that indicates whether the project should be accepted or not.

Finally, the manager's background is in design, so he likes to see documents that are visually pleasing. This assignment is worth 5 points. You have the opportunity to earn one extra credit point if you also set up a calculation and provide the accept/reject decision using the payback period. To earn the extra credit point, you will have to use nested =IF statements to figure out the payback period in one cell. For your firm, the maximum acceptable payback period is 4 years.

The following Excel functions may come in useful: =NPV, =IRR, =IF

Attachment:- Excel Functions.rar

Reference no: EM131305659

Questions Cloud

Description of the motivational practices : How a contemporary company motivates employees to support the development of an effective and competitive organization.  Identification of a company that utilizes effective motivational practices. Description of the motivational practices.
Two beliefs your organization has about management : Which of your current beliefs (choose one or two) around Management do you wish could change (describe it) and why? Identify one or two beliefs your organization has (that may be different from your own) about Management (describe it) that you would ..
How many adults in total said they watch the cooking channel : Regardless of the number of dogs or cats someone owns (including zero!), about how many U.S. adults in total said they watch the Cooking Channel?
Discuss about the focus of juvenile justice : During the course of processing a youthful offender, under what circumstances, if any, should the juvenile justice system abandon rehabilitation and focus on punishment?What criteria should be used when deciding whether to focus primarily on punish..
Financial analyst for a small firm : FIN 340 Excel Assignment. You have just been hired as a financial analyst for a small firm whose employees do not have much experience with Excel. As your first task, you have been asked to develop a simple Excel spreadsheet that your manager can ..
Analyze commonly accepted forensic techniques : Explain how to process and retrieve trace evidence involving firearms.Evaluate accepted methodologies employed in contemporary crime scene management relative to firearms. Analyze commonly accepted forensic techniques and contemporary specialized tec..
Discuss about the police leadership and organizations : Discuss about the Police leadership and Organizations.Write two paragraphs on your opinion on the subject provided and what you would or would not change based on your beliefs, opinions and thoughts.
Draw an arbitrary budget constraint for a person : Draw an arbitrary budget constraint for a person assuming that he or she receives no workers' compensation - Analyze the difference in the labor supply incentive effects of these two programs.
Determine the family and school risk factors for gang : Discuss the three models used to understand the relationship between delinquency and gang involvement. Which do you agree with most? Why?Determine the family and school risk factors for gang involvement.

Reviews

Write a Review

Financial Management Questions & Answers

  Equal annual payments at annual compound rate

Growth Fertilizer purchases a gravity settling tank by borrowing the $50,000 purchase price. The loan is to be repaid with four equal annual payments at an annual compound rate of 15%. It is anticipated that the tank will be used for 9 years and then..

  Least likely to be part of an annual report

Which of the following is least likely to be a part of an annual report? a) Financial tables b) discussions of the firm's lines, its services to its customers, and its contributions to the communities in which it operates c) audited financial stateme..

  Three deposits have added to your nest-egg

Assume that, to help build your nest-egg, you made two deposits of $100, one on January 1, 2013, and one on July 1, 2013, in a savings account that paid 10 percent compounded semiannually. Then you made a third S100 deposit on April 1, 2014. How much..

  Average net nonoperating obligations

The fiscal 2009 financial statements of Lowell Inc.'s shows average net operating assets (NOA) of $3,708,639 thousand, average net nonoperating obligations (NNO) of $630,065 thousand, average total liabilities of $1,753,554 thousand, and average equi..

  Respective businesses produce earnings before interest

Adams operates his $30000 firm using his own equity. Bob operates his firm with $15000 of his own money plus $15000 of debt at a cost of 12 percent interest. Calculate Adams's and Bob's return on equity if their respective businesses produce earnings..

  Lease analysis-modernization and cost reduction program

As part of its overall plant modernization and cost reduction program, the management of Tanner-Woods Textile Mills has decided to install a new automated weaving loom. In the capital budgeting analysis of this equipment, the IRR of the project was 2..

  What amount of new investment income could be generated

If Crappola earns 9.5% on invested funds, what amount of new investment income could be generated on an annual basis?

  According to the international fisher effect

Nominal annual interest rates in Germany are 5%. The spot rate for the Euro is $1.21 and the Euro is expected to adjust to a future spot rate (one year from today) of $1.25. According to the international Fisher effect (IFE), what is the nominal inte..

  Standardized measure of how stocks perform relative

Correlation, a standardized measure of how stocks perform relative to one another in different states of the economy, has a range from _______

  Grow by maintaining a constant mix of debt and equity

The estimate of how quickly a firm may grow by maintaining a constant mix of debt and equity is called:

  Required return on riskier stock exceed-on less risky stock

Stock R has a beta of 1.5, Stock S has a beta of 0.75, the expected rate of return on an average stock is 13%, and the risk-free rate is 7%. By how much does the required return on the riskier stock exceed that on the less risky stock?

  Chief advantage of factoring of receivables

Which of the following is a chief advantage of factoring of receivables? Factoring is a cheap way to finance Factoring transfers the risk of default to the factor Factoring lengthens the Operating Cycle Factoring is easily obtainable during economic ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd